Li Gen from Aofei Temple
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How much does autonomous driving contribute to Intel?

The latest answer is US$203 million in a single quarter , equivalent to nearly RMB 1.4 billion.

This is Intel's latest financial report for Q1.

Although the autonomous driving business has grown significantly, other main businesses are not strong. Main projects such as the computing group and data center have shown weak growth.

Intel also further lowered its future revenue expectations.

As a result, the stock price plummeted by 9% in a single day , the market value evaporated by nearly US $240 billion in one day , and the overall market value dropped to US$235.8 billion .

In addition, the Wall Street Journal also revealed that Apple had previously planned to acquire Intel's smartphone modem division, but with the settlement between Apple and Qualcomm, Intel announced its withdrawal from 5G baseband research and development, and the negotiations were aborted.

It's really a bad year.

Autonomous driving report card

Among future-oriented businesses, autonomous driving is undoubtedly one of Intel's key areas of focus.

In the first quarter 2019 financial report, Intel's autonomous driving business Mobileye had revenue of US$209 million , compared with US$151 million in the same period last year , a year-on-year increase of 38.4%.

Among them, operating profit was US$68 million , compared with US $10 million in the same period last year , an increase of 580% year-on-year .

Although there have been recent reports of layoffs in the autonomous driving business, the number of people involved is only dozens, which is not a large proportion of the team of thousands.

Intel also explained that the purpose is to reduce resource overlap.

Pessimistic future outlook

Intel's performance in the first fiscal quarter of 2019 was not bad.

Intel's first-quarter revenue was $16.1 billion , flat compared with $16.1 billion in the same period last year.

Net profit was $4 billion , down 11% from $4.5 billion in the same period last year.

By segment, Intel's Client Computing Group had first-quarter net revenue of $8.586 billion, compared with $8.220 billion in the same period last year.

The data center business, which is undergoing a strategic transformation, had revenue of $4.902 billion in the first quarter, compared with $5.234 billion in the same period last year.

Operating profit was $1.841 billion, compared with $2.602 billion in the same period last year.

What's even more disappointing is that Intel's first-quarter results and second-quarter and full-year performance outlook all fell short of Wall Street analysts' expectations, causing its stock price to fall sharply by 9% after the market closed.

It recorded the biggest drop in nearly three years, with the market value evaporating by nearly US$24 billion on Friday US time.

Apple's smartphone modem acquisition falls through

More bad news also came out at this time.

The Wall Street Journal broke the news that Apple had planned to acquire Intel's smartphone modem chip division, but after reaching a settlement agreement with Qualcomm, the negotiations have cooled and Intel plans to look for other buyers.

At the time of the negotiations, Apple was interested in acquiring part of the latter's smartphone modem chip business. The transaction amount could reach billions of dollars, which would accelerate Apple's process of developing wireless technology for its devices.

However, with the settlement between Apple and Qualcomm, Intel withdrew from the research and development of mobile phone 5G modems, and now the negotiations with Intel have also failed.

Intel CEO Bob Swan said that the company is currently conducting an internal evaluation of its smartphone modem business and will make the "best choice" after that.